dilemma of resale or direct buy

[csimonri]

My parents recently bought direct from Disney points into the grand floridian. 200 points at about 150.00 a point. Resale seems to be much less I was thinking of buying in myself to a resort at resale. I am nervous about the different benefits offered. Should I really worry about this? Is it that big of a difference between the 2? I know about not being able to do the disney destination program or RCI but with the cost difference being so drastic is the resale market a good deal or should I go direct?

 

[supersnoop]

You can still do RCI with resale. Unless you want to buy at the Grand Floridian, resale is the way to go.

 

[zavandor]

DVC is worth the money if you buy it to use it for DVC resorts. The other options are not a good use of points.

Just as an example: a 3 nights cruise on points, would cost you on average 110 points per person. With 110 points you can book a studio for the whole family for 1 full week at most of the resorts.
To book you need to pay 95$ booking fee and wait for availability, that is very limited. On top of that, this is a perk so it might be removed at any time for everyone (and it was in the past).


BTW: You can use resale points for RCI.

 

[graychef]

I know about not being able to do the disney destination program or RCI but with the cost difference being so drastic is the resale market a good deal or should I go direct?

This is a little inaccurate.

The official statement:
Beginning March 21, 2011, Members who purchase their Ownership Interest in any DVC Resort from a person or entity other than directly from DVC shall not be able to use the Vacation Points associated with that Ownership Interest for reservations or stays through the Incidental Benefits known as the Adventurer Collection, Concierge Collection, or The Disney Collection.

If you buy resale you may still use ALL Disney Vacation Club resort properties which include Old Key West, Saratoga Springs, Boardwalk, Bay Lake Tower, Beach Club, Vero Beach, Hilton Head, Wilderness Lodge, Animal Kingdom, Grand Californian, Aulani and Villas of Grand Floridian.

You may also participate in trading to all the resorts within the World Passport Collection. This collection includes over 500 resort locations worldwide.



Most feel these restrictions don't hurt much due to the point charts and values just not making sense with DVC points.

 

[TheDalys]

Direct if you want all the benefits (Disney DVC Resorts, Adventures, Cruise, RCI, Collection, Conceirge).

Resale if you just want Disney DVC Resorts, and RCI.

If one year you do not want Disney you can always rent a vacation to a friend or family member and use that cash to pay for a different destination.

Resale works great for us.

 

[nalajms]

It's kind of like buying a Tiffany's diamond ring. Even a small one will probably cost you around 20k. If things don't work out and you try to sell it on the secondary market, you'd be lucky to get 50% of what you paid for. The mark up from Disney is very high. There is only 1 Disney, and they have the ability to charge those prices.

 

[DVCanadian]

My parents recently bought direct from Disney points into the grand floridian. 200 points at about 150.00 a point. Resale seems to be much less I was thinking of buying in myself to a resort at resale. I am nervous about the different benefits offered. Should I really worry about this? Is it that big of a difference between the 2? I know about not being able to do the disney destination program or RCI but with the cost difference being so drastic is the resale market a good deal or should I go direct?

There isn't a big difference. Whether it is an important difference to you, only you can decide.

The resale market is a good deal.

 

[crisi]

DVC is worth the money if you buy it to use it for DVC resorts. The other options are not a good use of points.

Just as an example: a 3 nights cruise on points, would cost you on average 110 points per person. With 110 points you can book a studio for the whole family for 1 full week at most of the resorts.
To book you need to pay 95$ booking fee and wait for availability, that is very limited. On top of that, this is a perk so it might be removed at any time for everyone (and it was in the past).


BTW: You can use resale points for RCI.

And what some members do is take those 110 points they would have used to cruise per person - lets say 220 points - and rent them through David for $11 a point - David will do most of the work. They have $2420 towards their cruise - which goes a long way on a three night cruise for two people.....They don't have the $95 fee, and they don't have the points restrictions that happen when you book outside the system.

Sometimes its a good deal to cruise on points - the cruise you want might be 110 points a person, but more than $2420 for two people. But USUALLY this works to your financial favor.

 

[csimonri]

So resale seems to be the best bet. I was just nervous about losing out on perks given to direct buy customers. I am not even sure what concierge level is. Thanks everyone!

 

[csimonri]

You can still do RCI with resale. Unless you want to buy at the Grand Floridian, resale is the way to go.

Why is the Grand Floridian singled out? Why is that one resort better to buy through Disney directly?

 

[crisi]

Why is the Grand Floridian singled out? Why is that one resort better to buy through Disney directly?

Because right now, you might find a resale contract, but it will be pretty close to the price of buying direct. The newest current resort is always like that - and if that is what you want, and you don't want to wait several years hoping prices will drop (and they may not, Grand California Villas is also no bargain resale because its so small and the only DVC resort in California), you might as well buy direct if its an affordable option for you - and if the majority of your trips will be at that resort.

If you don't care where you stay as long as you are at Disney World - then SSR is a great option for value. But you should take some time to learn about availability patterns and resorts.

 

[disneynutz]

So resale seems to be the best bet. I was just nervous about losing out on perks given to direct buy customers. I am not even sure what concierge level is. Thanks everyone!

Disney wants you to think that buying direct is the best so they created the restrictions and tell you of all of the places where you can use your points outside of Disney.

It's like many of the frequent flyer programs, the seats are limited, the required points are high, but you are welcomed to use them for a first class seat if you want to.

Bill

 

[Minniesgal]

Why is the Grand Floridian singled out? Why is that one resort better to buy through Disney directly?

Because it is too new to get a good enough deal to make it worth going resale

 

[Countryrunner262]

Is resale still the best option for a 25-50 point contract with wanting a specific UY, or is this a time direct maybe better?

 

[lovin'fl]

Is resale still the best option for a 25-50 point contract with wanting a specific UY, or is this a time direct maybe better?

Yes, direct may be the way to go in this instance. We just did for BWV, wanted 55 points with one of our current UYs (June or Aug) and they are hard to find via resale and they go for a higher pricepoint than larger contracts (so with direct closing costs being less it works out to be pretty close cost wise). And you get fully loaded contract with direct (we got 2013 points and forward).

 

[thejamester]

Is resale still the best option for a 25-50 point contract with wanting a specific UY, or is this a time direct maybe better?

I purchased 55 points AKV resale and saved approx $55 per point. Smaller contracts generally go faster and usually cost more. The more specific your needs are the more likely you will need to purchase directly.

 

[Countryrunner262]

I purchased 55 points AKV resale and saved approx $55 per point. Smaller contracts generally go faster and usually cost more. The more specific your needs are the more likely you will need to purchase directly.

That's what I was thinking. We would really like 25 points with a June UY at SSR. I've been watching since the beginning of the year and havnt noticed any resale as of yet.

 

[skier_pete]

We just bought our first contract resale (not even through closing). I would agree with other posters that the benefits of the direct buy aren't really worth the doubling of the initial cost. Buying direct seems to me best for someone with a "cost is no object" attitude.

The ability to use points outside of DVC for cruises, other hotel stays, etc, seem nice on the face of it, but Disney basically screws you when your doing this by giving you a VERY poor value for your points. You are much better off renting your points on the rental market and paying cash any of those things. Again, if how much a trip actually costs doesn't matter, then using the points this way is just fine.

The other benefit is when buying resale it takes a while (3 months) to actually get the points. If the extra money is not worth your patience, then buying direct may be better.

As others have pointed out, to me a HUGE benefit of buying resale is that you could sell again in the next few years without taking a giant bath. For instance, we just bought a resale contract from someone at AKV for 160 pts for $74/pt. Searching the history, they bought it in 2009 for what looks like $112 a point. This means that contract cost them $6000 for the 6 years they used it. Now, if I sell that contract six years from now, while I can't predict the exact price, I would probably be able to sell for between $70 and $85 a point. So whereas that contract cost them $6000 for 6 years, it might cost be nothing for six years.

Since my plan is to use my contract to the bitter end, that doesn't really factor for me, but it DOES on the YNK scale (you never know).

 

[nalajms]

Now, if I sell that contract six years from now, while I can't predict the exact price, I would probably be able to sell for between $70 and $85 a point.

Take that with a grain of salt. When the economy was at a low point and the timeshare market dropped, AKV was selling in the $50s. That was about 2 years ago. You may still lose, but not as much as someone who buys in at today's prices.

 

[skier_pete]

Take that with a grain of salt. When the economy was at a low point and the timeshare market dropped, AKV was selling in the $50s. That was about 2 years ago. You may still lose, but not as much as someone who buys in at today's prices.

Youch - I think if they got that low, I'd be buying in some more!